Naira Depreciates To N951.22/ Dollar At Official Market

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Naira depreciated to N951.22 against the dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday from N828.33 against the dollar when it opened for trading.

This is according to FMDQ data on NAFEM, where foreign exchange is officially traded in Nigeria.

Naira at NAFEM reached a peak of N1150 against the dollar and a N757.00 against the dollar low on Wednesday.

The domestic currency had appreciated by 3.85 percent to close at N806/73 to a dollar at the close of business on Tuesday.

This represents an N31.04 gain increase in the local currency compared to the N837.77 it closed on Monday.

The intraday high recorded was N1150 against the dollar, while the intraday low was N757 against the dollar, representing a wide spread of N393 against the dollar.

According to data obtained from the official NAFEM window, forex turnover at the close of trading was $142.63 million, representing a 92.93 percent increase compared to the previous day.

However, the naira dropped marginally at the parallel forex market where forex is sold unofficially. The exchange rate appreciated by 0.43 percent, quoted at N1170 against the dollar, while peer-to-peer traders quoted around N1165.23 against the dollar.

The Central Bank of Nigeria (CBN) has said it has made tranche payments to 31 banks to clear the backlog of foreign exchange forward obligations.

The apex bank also disclosed that it has set up foreign exchange frameworks to address FX issues.

The Managing Director/CEO, of Financial Derivatives Company Limited, Bismarck Rewane had said in a report that the naira is expected to remain volatile on lingering forex supply concerns.

The dollar dearth means speculative buying is likely to continue, with an increasing number of market participants taking long positions on the dollar while shorting the naira.

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